Strata apartment with no body corporate. Opinions, please?

[Harriet]

Hello,

I am currently looking at a 2BR unit. It's strata-titled. There are three properties in the strata scheme: an original house and two units built behind it.

While there is a strata scheme in place, there is no body corporate. I've been advised by the agent this is quite common for older strata schemes in the area. I asked what happens when there is an issue with common property, and she said: "The owners get together and decide what they want to do."

My first questions - is this legal, to have a strata scheme with no body corporate?

And secondly, am I asking for trouble, investing in a strata-titled property, with no funds or facility set aside for issues with common property?

I feel uneasy about it . . . .

Thoughts, learned people?

 

[Harriet]

And what about insurance?

 

[Paul@PFI]

http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Strata_schemes.page?

Fair Trading provide a very good source of information since OCs are governed by state law. Small lots comprising two-three dwellings are normally self-managed and exist in theory rather than as a functional corporation.

What is the common property ?? A driveway and some plants ?
Is each habitable property comprised of separate and isolated walls ? An insurer would have no issue if they are isolated. Issues arise where there is a common roof, wall or floor etc (ie upstairs v downstairs). I'm sure you may appreciate the common property such as a letterbox is really not a major issue.

These issues aren't greatly different to the issue of neighbouring fences and retaining walls and landscape that form boundaries. That said some neighbours can be ********s.

Its worth discussing with your solicitor now before an offer. They would be familiar with issues and typical problems and their remedies.

I looked at a battle axe home on a rear lot of three with the CP being a driveway and plants. The neighbours all were very good and agreed that NOBODY parks in the roadway. No visitors no friends no boats etc no exceptions. Didn't buy it but it seemed very functional and all kept "their portion" mowed and clean. One neighbour was a slacker and one of the others did his section and there was no apparent issue. (He was a much older guy).